ECIPE — European Centre for International Political Economy

A study by ECIPE

Cloud and AI Development Act (CADA)

The real-world economic impact of the Cloud and AI Development Act

Impact by country

Austria

€4.1bn
10-year exposure, Medium scenario
€3bn
One-off migration cost, Medium
€87m/yr
Recurring price effect, Medium

Cost per person in the working-age labour force

Per economically active person (age 20–64), 10-year horizon

Measure Narrow Medium Broad
10-year total economic exposure €354 €900 €1,526
Effect on the real GDP level -€9 -€35 -€81

Annual recurring cloud-service price effects

€ million, 2025 expenditure base

Sector
Scenario Per year 5 years 10 years
Narrow €47m €235m €470m
Medium €87m €437m €874m
Broad €150m €751m €1.5bn

Migration and systems-redesign costs

Present value of one-off transition costs, € billion

Sector
Narrow €1bn
Medium €3bn
Broad €4.9bn

Ordinary public support

€ million, public sector

Narrow €0.3m
Medium €3.3m
Broad €11m

Transition scarcity costs

Present value, € million, public and private sectors combined

Narrow €0.8m
Medium €9m
Broad €33m

Downstream ICT-vendor exposure

Domestic vendors affected, and annual value added at risk

2
Narrow – vendor equivalents affected
6
Medium – vendor equivalents affected
14
Broad – vendor equivalents affected
€31m
Narrow – annual value added at risk
€121m
Medium – annual value added at risk
€275m
Broad – annual value added at risk

Combined delayed cloud and AI benefits

€ billion, forgone productivity gains

Narrow €6.3m
Medium €77m
Broad €246m